You are here: Home - Saving & Banking - News -

Co-op Group may re-enter financial services once bank sold

0
Written by: Owain Thomas
06/04/2017
The Co-op Group has not ruled out returning to the financial services market once the Co-op Bank has been sold.

However, Co-op Group CEO Steve Murrells admitted that given the current phrasing of the articles of association it would not be possible.

In its annual accounts published today, Co-op Group announced it had written down the value of its minority shareholding within the Co-op Bank from £185m last year to £0.

It said this was the result of “volatility caused by the ongoing sales process at the Bank”.

Co-op Group holds a 20% stake in Co-op Bank, but Murrells said whether it would retain any interest in the bank once it was sold is still to be determined.

“As a minority shareholder it’s out of our hands,” he added.

Bank sale

Speaking on the Today programme, Murrells said: “It’s a number of years since we owned the bank. The history is well known of the difficulty it got itself into and we chose to take the decision back then to save the bank, do the right thing based on our past and our beliefs but put it in to the hands of other shareholders.”

When asked if the previous sale now prevented Co-op from re-entering financial services, Murrells added: “As the articles are written today, no we can’t.”

However, he did not rule out any possible future moves.

The write-down pushed the Co-op Group into a pre-tax loss of £132m  in 2016, down from a £23m profit in 2015.

Relying on mortgages

The Bank’s latest results in March showed it was relying on performance in its mortgage division to help turn around its fortunes, after confirming it was up for sale in February this year. It posted a statutory loss before taxation of £477.1m for 2016, against £610.6m in 2015.

Co-op Bank praised its “award-winning” intermediary channel Platform, which accounted for 91% of completions. The retail mortgage book grew by 5% to £14.1bn from £13.4bn in 2015, representing a 1.1% market share with £3.1bn of gross lending last year and is targeting annual increases of £1bn through its broker mortgage lender.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
funeral
‘Heavy blow to families’ as bereavement benefit reforms hit today

From today, the benefits available to the bereaved will be significantly reformed with one firm saying that those with young...

Close